At&t Pay Tv unit under financial fire
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Directv still generating $4 billion a year of free cash flow for AT&T. If it was sold today, it would go for a minimum of $25 billion. The fantasies some people have that it is nearly worthless demonstrate their cluelessness for all to see.
Their problem is they paid 69 billion for it. And regarding cash flow, we have yet to see how much more the free cash will decline.
They can't sell it because they would have to write it down drastically to match future expectations.
Best they can expect is that the rate of decline will slow down.
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As a standalone body, it is viable though in need of adapting to the future media model.
Its trouble is because it is a division in a gigantic corporation, which makes it more like an appendage and with companies that big, it is expendable unless it generates % percent growth and/or profit. Though offloading Directv would likely be hard, who’d buy at top dollar for a dying model (see Myspace).
I doubt Dish buys Directv, firstly Ergen lacks the capital (all of that is going to the broadband). Secondly, the business model of Directv and Dish are rather far apart. I feel for Directv employees because they were bought out by a corporation with very short term ideas. And it is likely going to harm the entity that is Directv severely.
- Nov 29, 2003
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Again, for those companies named, why would they want it?
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Its a system that works well ....
Just because ATT gave up and is destroying it doesn't mean it should be.
They could buy it, restore it and have the best of both.
They will sell it off eventually ...
Spinning it off into its own entity but being still owned by them, wouldn't help I don't believe.
Yes they overpaid for it. One underrated benefit of the acquisition is that it made Uverse TV (and now AT&T TV) cheaper for them to offer than if they hadn't bought Directv, due to getting better deals with networks. At the time they bought it AT&T's CEO said that Uverse TV cost them $14/month per subscriber more for rights (based on equivalent packages) than Directv was paying. That's a billion dollars a year in savings as they were able to renegotiate contracts (or even more if the addition of Uverse TV's 6 million subscribers means they got even better deals than Directv was able to get)
But yeah even if you add that billion to the $4 billion in free cash flow, it isn't going to add up to the $50-$69 billion they paid (I've seen multiple figures, not sure which one is "correct" - I suppose it was based on stock prices so probably both were correct depending on whether it was measured when the deal was agreed to or when the deal was completed)
But the fact it was a bad deal in hindsight (which as I've said is almost always the case for ANY acquisition anywhere near that size) doesn't impact that Directv is still worth a minimum of $25 billion to AT&T, and that selling it off would mean they'd have to take a writeoff for the value it lost. Easier to hold onto it and write it down a little bit at a time - better for taxes and MUCH better for the job security of the management team and board who made the acquisition happen.
Both are correct. The 49-50 billion was cash payment. The other 19 billion was assuming payment of directv's debt service (bonds or whatever).
I believe Voom succeeds and purchase DTV. I can't get enough of the Monsters HD channel.
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Traditional cable and satellite services have peaked and are fading away. Its time for a new technology to take over. It won't be 5g in its current form but probably something similar with better frequencies
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What is wrong with streaming?
You should be angry at Traditional Providers for basically pricing themselves so high it allowed the market to open up for these streaming companies and I do not just mean the live TV services.
If you are mad about streaming maybe you should be mad at those getting free TV via a antenna.
Also, I just read about the Comcast price increase, Broadcast TV Fee is going up to $14.95 a month, Regional Sports Fee is $8.25 a month and that is on top of the increase to packages, talk about wanting to push away your customers to those streaming services.
Comcast Is Once Again Raising Prices on Cable TV & Internet | Cord Cutters News
If you are a Comcast customer, be prepared for a price hike. Comcast is rolling out price hikes across the nation, and according to a new Comcast price sheet, the hikes will go into effect on December 18, 2019. With this new price hike, you will see the price on Broadcast TV go up from …www.cordcuttersnews.com
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A lot of things.
It’s not fair the streaming providers can under cut the traditional providers because they have no over head, techs, support or equipment and facilities to maintain
- Nov 29, 2003
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They have all that and more, the only thing they don’t have is someone coming to your door or to fix the lines, why do you think streaming is someone doing it all of their garage?
Here is one of their garages-
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It's not fair that they can charge different prices because they have a different business model?
Oh Nooooo,They have all that and more, the only thing they don’t have is someone coming to your door or to fix the lines, why do you think streaming is someone doing it all of their garage?
Here is one of their garages-
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The Garage is out back ....
